Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on May 27

Analysis of transactions in the EUR / USD pair

Only one signal appeared in the market yesterday. It was to sell at 1.2247, which coincided with the time that the MACD line was moving down from zero. As a result, euro declined by as much as 30 pips.

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Trading recommendations for May 27

Pay attention to the upcoming statements from the European Central Bank as those will certainly affect investor sentiment. At the same time, the market will be driven by data on US jobless claims, orders for durable goods and 1st quarter GDP. More specifically, if these indicators show better-than-expected growth, demand for dollar will soar, which will accordingly lead to a decline in EUR / USD.

For long positions:

Enter a long position when the quote reaches 1.2211 (green line on the chart), and then take profit around the level of 1.2266. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.2172 (red line on the chart), and then take profit at the level of 1.2112. Euro will decline if the US releases a strong GDP report. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

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What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR / USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR / USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Analysis of transactions in the GBP / USD pair

A number of signals appeared in the market yesterday. The first one is to sell at 1.4152, which coincided with the time that the MACD line was moving down from zero. As a result, pound declined by as much as 20 pips. Afterwards, the currency rose and formed a buy signal, but it happened when the MACD line was at the overbought area. Hence, traders had to ignore the signal as the upward potential was limited. Then, when the pound hit 1.4152, another sell signal appeared, and it coincided with the time that the MACD line was going down from zero. Such pushed GBP / USD down by 30 pips.

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Trading recommendations for May 27

Pound is expected to continue dropping today, partly due to the lack of UK statistics. Data on the US GDP could also add pressure on the currency, so it is best to open short positions in the market.

For long positions:

Enter a long position when the quote reaches 1.4132 (green line on the chart), and then take profit at the level of 1.4175 (thicker green line on the chart). But before buying, make sure that the MACD line is above zero, or is starting to rise from it.

For short positions:

Enter a short position when the quote reaches 1.4100 (red line on the chart), and then take profit at the level of 1.4042. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

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What's on the chart:

The thin green line is the key level at which you can place long positions in the GBP/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the GBP/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com

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